Does the additional funds estimate for Better Blend include payments on loans the business may have?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
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- This includes any other required expenses you will incur before operations begin and during the initial 3-month period of operations, such as payroll, additional inventory, rent, and other operating expenses in excess of income generated by the business. It does not include any salary or compensation for you. It does not include payments on loans your business may have. In formulating the amount required for additional funds, we relied on the following factors, basis, and experience: the development of a Better Blend business by our affiliate, and our general knowledge of the industry.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–17)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the additional funds estimate does not include payments on loans the business may have. The additional funds are estimated to be between $20,000 and $30,000 for the first three months of operation.
These additional funds are intended to cover expenses incurred before operations begin and during the initial 3-month period, such as payroll, additional inventory, rent, and other operating expenses that exceed the income generated by the business. The estimate does not include any salary or compensation for the franchisee.
Better Blend based its calculation for the additional funds on the development of a Better Blend business by its affiliate, and their general knowledge of the industry. A prospective franchisee should consider this when planning their initial capital and ensure they have sufficient funds to cover loan payments and personal compensation in addition to the estimated additional funds.